The Cabinet has approved the recapitalisation of Regional Rural Banks to improve their capital. The decision was taken in a Cabinet meeting held in New Delhi chaired by the Prime Minister, Dr. Manmohan Singh. Briefing newsmen in New Delhi, the Information and Broadcasting Minister Mrs. Ambika Soni said, Central Government's share of 1100 crores rupees on this account will be released for this fiscal and the next. However, the Centre's share will be contingent on proportionate release of State Governments and sponsor- banks’ share. A capacity building fund with a corpus fund of one hundred crore rupees to be set up by the Central Government with NABARD has also been approved. In another important decision, the Cabinet has decided to amend the Press and Registration of Books Act, 1867 to streamline the print media policy and the guidelines. Under the amendment, those convicted to terrorist act or anything done against the security of the State would be prevented from bringing out the publication. Blocking of a title for publication without going into actual publication has also been given a time-line. Filing of annual statement by the publishers has also been made compulsory. Giving the details, Information and Broadcasting Secretary, Reghu Menon said that however, the Foreign Investment Policy for Publication has not been amended. In another decision, the Cabinet also approved a proposal for Central Sales Tax laws related compensation to States for the loss incurred in financial year 2010-11. The cabinet has also approved to make on account payment of compensation to the States for revenue loss in the same year due to reduction in Central Sales Tax. In another decision, the Cabinet also approved the proposal of Ministry of Finance for amendment in the Coinage Bill 2009. The bill is pending in Lok Sabha. The Cabinet Committee on Economic Affairs has approved the Follow on Public Offer, FPO, of Power Finance Corporation. The FPO will consist of 17 crore equity share of ten rupees each constituting fresh issue of 15 per cent of pre-issue existing paid up capital.
News On AIR | February 10, 2011 7:07 PM
Govt approves recapitalisation of Regional Rural Banks